TY  - JOUR
AU  - Razin,Assaf
AU  - Yuen,Chi-Wa
TI  - The "New Keynesian" Phillips Curve: Closed Economy vs. Open Economy
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 8313
PY  - 2001
Y2  - June 2001
UR  - http://www.nber.org/papers/w8313
L1  - http://www.nber.org/papers/w8313.pdf
N1  - Author contact info:
Assaf Razin
Department of Economics
Cornell University
Uris 422
Ithaca, NY 14853
Tel: 607/255-9625
Fax: 607/255-2818
E-Mail: ar256@cornell.edu

Chi-wa Yuen
University of Hong Kong
E-Mail: cwyuen@ust.hk
AB  - The paper extends Woodford's (2000) analysis of the closed economy Phillips curve to an open economy with both commodity trade and capital mobility.  We show that consumption smoothing, which comes with the opening of the capital market, raises the degree of strategic complementarity among monopolistically competitive suppliers, thus rendering prices more sticky and magnifying output responses to nominal GDP shocks.
ER  -